Pool Corporation $POOL Shares Sold by William Blair Investment Management LLC

Key Points

• William Blair Investment Management cut its Pool Corporation stake by 6.4% in the fourth quarter, selling 35,394 shares and ending with 519,836 shares valued at about $118.9 million.
• Pool reported quarterly EPS of $1.43, topping analyst expectations, while revenue rose 6.2% year over year to $1.14 billion. The company also raised its quarterly dividend to $1.30 per share and authorized a $600 million stock buyback.
• Analyst sentiment remains mixed, with several firms lowering price targets and the consensus rating sitting at Hold with an average target price of $261.38. Meanwhile, insiders have been buying shares, including two directors who recently added to their positions.

William Blair Investment Management LLC trimmed its holdings in Pool Corporation (NASDAQ:POOL - Free Report) by 6.4% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 519,836 shares of the specialty retailer's stock after selling 35,394 shares during the period. William Blair Investment Management LLC owned 1.40% of Pool worth $118,912,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Root Financial Partners LLC acquired a new stake in Pool in the 3rd quarter worth about $29,000. Private Trust Co. NA boosted its stake in Pool by 78.6% in the 4th quarter. Private Trust Co. NA now owns 125 shares of the specialty retailer's stock worth $29,000 after buying an additional 55 shares during the last quarter. CYBER HORNET ETFs LLC acquired a new stake in Pool in the 2nd quarter worth about $30,000. Covestor Ltd boosted its stake in Pool by 348.4% in the 4th quarter. Covestor Ltd now owns 139 shares of the specialty retailer's stock worth $32,000 after buying an additional 108 shares during the last quarter. Finally, MUFG Securities EMEA plc purchased a new position in shares of Pool in the 2nd quarter worth about $33,000. 98.99% of the stock is owned by institutional investors and hedge funds.

Pool Stock Performance

Shares of NASDAQ:POOL opened at $184.64 on Friday. The company has a market cap of $6.73 billion, a P/E ratio of 16.99, a PEG ratio of 2.34 and a beta of 1.16. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.55 and a current ratio of 1.87. Pool Corporation has a one year low of $172.68 and a one year high of $345.00. The business's 50-day simple moving average is $203.98 and its 200 day simple moving average is $229.57.

Pool (NASDAQ:POOL - Get Free Report) last announced its earnings results on Thursday, April 23rd. The specialty retailer reported $1.43 EPS for the quarter, beating the consensus estimate of $1.34 by $0.09. The business had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.82 billion. Pool had a return on equity of 32.37% and a net margin of 7.57%.The company's revenue was up 6.2% on a year-over-year basis. During the same period last year, the business posted $1.32 EPS. Pool has set its FY 2026 guidance at 10.870-11.170 EPS. On average, sell-side analysts forecast that Pool Corporation will post 11.08 earnings per share for the current fiscal year.

Pool announced that its board has initiated a stock repurchase program on Wednesday, April 29th that allows the company to buyback $600.00 million in outstanding shares. This buyback authorization allows the specialty retailer to repurchase up to 7.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's leadership believes its shares are undervalued.

Pool Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, May 28th. Investors of record on Thursday, May 14th will be issued a dividend of $1.30 per share. This represents a $5.20 annualized dividend and a dividend yield of 2.8%. The ex-dividend date is Thursday, May 14th. This is an increase from Pool's previous quarterly dividend of $1.25. Pool's dividend payout ratio (DPR) is 47.84%.

Pool News Roundup

Here are the key news stories impacting Pool this week:

• Neutral Sentiment: Corporate announcements from non-U.S. companies involving share pools, buybacks, and incentive-pool changes, which do not appear related to Pool Corporation.
• Neutral Sentiment: Local news about public pool openings and pricing changes, which is unrelated to Pool Corporation’s business performance.
• Neutral Sentiment: Crypto articles referencing “miner pools,” which have no direct bearing on Pool Corporation.

Insider Buying and Selling at Pool

In other Pool news, Director John E. Stokely acquired 1,000 shares of the company's stock in a transaction on Thursday, May 7th. The shares were bought at an average cost of $193.06 per share, for a total transaction of $193,060.00. Following the acquisition, the director directly owned 16,230 shares of the company's stock, valued at $3,133,363.80. This trade represents a 6.57% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director David G. Whalen acquired 525 shares of the company's stock in a transaction on Friday, May 8th. The shares were acquired at an average price of $190.44 per share, for a total transaction of $99,981.00. Following the completion of the acquisition, the director directly owned 8,936 shares in the company, valued at $1,701,771.84. The trade was a 6.24% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders bought 32,549 shares of company stock worth $6,283,552. Insiders own 3.00% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. Bank of America reduced their price objective on Pool from $229.00 to $226.00 and set an "underperform" rating on the stock in a research note on Monday, April 20th. Deutsche Bank Aktiengesellschaft set a $246.00 price objective on Pool in a research note on Friday, February 20th. Zacks Research raised Pool from a "strong sell" rating to a "hold" rating in a research note on Monday, April 27th. Stifel Nicolaus reduced their price objective on Pool from $240.00 to $210.00 and set a "hold" rating on the stock in a research note on Monday, May 11th. Finally, Oppenheimer reduced their price objective on Pool from $346.00 to $280.00 and set an "outperform" rating on the stock in a research note on Tuesday, February 24th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $261.38.

Pool Profile

Pool Corporation is a leading wholesale distributor of swimming pool supplies, equipment, and related outdoor living products. Headquartered in Covington, Louisiana, the company serves a diverse customer base that includes service professionals, independent retailers, high-volume builders, and national retail chains. Pool Corporation's extensive branch network enables it to maintain strong local customer relationships while leveraging its scale to source products efficiently from manufacturers around the world.

The company's product portfolio spans pool and spa chemicals, water treatment equipment, pumps, filters, heaters, automation and control systems, liners, safety covers, and cleaning accessories.

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